AUD/USD Price Forecast – Australian Dollar Continues To Grind

The Australian dollar has done very little during the trading session on Monday to kick off the week, initially trying to rally but then found the area above the 50 day EMA as being a bit too expensive.
Christopher Lewis
AUD/USD daily chart, November 19, 2019

The Australian dollar has initially tried to rally during the trading session on Monday, only to turn around and show weakness again. Ultimately, this is a market that looks very likely to continue to see a lot of noise around it as the Australian dollar is so sensitive to the US/China trade situation. Ultimately, I think that the market will continue to be very noisy as the nonsense between the leaders continue. There was initially reports that it was a “very constructive” phone call between the Americans and the Chinese over the weekend, only to have “unnamed officials” suggesting that they were very “pessimistic” about the phase 1 deal. In other words, it’s all noise, nonsense and gamesmanship.

AUD/USD Video 19.11.19

Unfortunately for Australia, it is heavily influenced by what’s going on between the Americans and the Chinese, and therefore it’s currency will be held hostage. All things being equal, this is a market that should continue to show a potential bottoming pattern, and if we can finally get some type of good news coming out of the trade situation that can actually stick, this market will reverse immediately. We are making “higher lows”, so that is in theory a good sign but unfortunately market participants will continue to be thrown around by the latest headline.

If we can break above the wipeout candle from Thursday, that would be a very good sign. If we were to break down below that candle, then it’s likely that the market goes looking towards the 0.67 level underneath. Unfortunately, though, he will have to keep your newsfeed open in order to figure out what happens next.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.